ETH Correction Likely to Reach $1,900
Ethereum (ETH) is currently undergoing a significant market correction, with analysts identifying key support levels. According to Glassnode, the Cost Basis Distribution (CBD) metric suggests that ETH could drop below $1,890, which is a major accumulation zone.
The CBD metric highlights areas where investors have heavily accumulated or distributed assets, influencing price behavior. Glassnode analysts point out that $1,890 is the largest accumulation zone below ETH’s current price, with 1.82 million ETH purchased at this level in August 2023.
Over the past two years, Ethereum's CBD data reveals that many investors who bought ETH in August 2023 are still holding. Some even increased their cost basis during the crypto market surge in November 2024, showing strong confidence in ETH’s long-term potential.
However, $1,890 is not ETH's immediate support level. If the decline continues, Glassnode suggests that $2,100 is the next short-term support level. This level holds only 500,000 ETH, significantly lower than the $1,890 accumulation zone. While $2,100 may provide temporary support, ETH could still dip below $1,890 if selling pressure intensifies.
Is ETH Being Accumulated During the Price Drop?
Glassnode also reports significant investor activity at much higher cost basis levels, particularly around $3,500. A six-month analysis of the Ethereum market suggests that investors are accumulating ETH during price declines rather than selling.
As market supply is absorbed, the overall cost basis declines, reinforcing investor confidence in ETH’s long-term growth.
Currently, Ethereum is trading at $2,250, reflecting a 3.84% increase in a day. Despite a major drop last week, its monthly losses stand at 30.48%. However, ETH’s market capitalization has risen 7.74%, reaching $29.91 billion.
